T 2 FORM FOR DELHI SHIPMENTS, VAT + CST

[satbir singh wahi]

1.CAN GOODS BE SHIPPED TO DELHI WITHOUT T 2 FORM , IF DELHI DEALER PROVIDES C-FORM LATER.

2. IF GOODS ARE SHIPPED TO DELHI WITH T 2 FORM , IS THERE ANY REQUIREMENT OF C- FORM.

Posts / Replies

[Pradeep Khatri]

Dear Satbir Singh,

T2 form is just like way bill and the C form is a statutory declaration in the ISS transactions from a registered dealer to other registered dealer under CST Act, 1956 that intended goods are specifically mentioned in buyer's RC and would be used as per the conditions mentioned in the form C. Issuance of Form C is mandatory by the buyer to seller in-spite of issuance of T2 form.

We are embedding a link below for knowing more about T2 form.

http://dvat.gov.in/website/home.html

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Deepak Whorra]

A related query is :

if goods are being sent to a final consumer in Delhi against full charge of central sales tax from outside Delhi , is T 2 then required ?

the final consumer can be a household for personal consumption , or a business entity that is planning to gift the goods or any dealer or non dealer in Delhi

[Pradeep Khatri]

Dear Deepak,

Please check DVAT Website in this regard.

http://dvat.gov.in/website/home.html

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Deepak Whorra]

Dear Pradeep,

thank you for your reply.

the fact is that almost everyone knows of this DVAT website . Yet if someone inquires on this forum then that person is confused from that web site or perhaps does not prefer to go thru the full act in detail.

thus an answer like this does not help at all.

mine is a simple query and experts can answer in simple short and concise form

[Deepak Whorra]

dear Pradeep,

i Hv tried to find the information from the DVAT website as suggested by you and do you know something :

Firstly the site requires a password / login

Secondly whatever parts one can access do not answer these queries.

Truthfully such answers as yours do not serve any purpose besides wasting time of everyone for they are not reflecting answers by experts

If you do not know the answer then why reply.. Or if you want to add the aggregate of the total nos of answers given by you then just write : I don't know...

Why waste everyone's time by such non informative answers. It's like you asking where is Mumbai located and me answering pls look at the Map of India instead of sayin in Maharashtra on the West Coast of India below Gujarat and North of ..............

[Pradeep Khatri]

"Jin khoja Tin Paya Gherey Pani paith". It is old saying which means, a person who dive deeper, finds pearl in the sea/ocean. We had checked your profile before replying to your query. You are a consultant and disseminate your views for setting up manufacturing businesses/unit etc. It means, your research skills should be excellent but it does not seems to us that you have such ability. you can only boil your blood on your failure to dig out a simple information on a website. The language you used on this discussion forum show how frustrating you are. Please convert this frustration and failures to you power. On this forum, we share our knowledge, experience to people like you everyday. In our 15 years career in the field of indirect taxation, you are the only person who used such rubbish wordings. Pity on you. However, without logging on the DVATs official website I dig the relevant information just for you. In the next reply we are sharing it with you. Hope that you will find it useful against your query.We will surely share this incidence with Mr. Pradeep Khatri and Mr. Agarwal to take necessary action.OM Shanti!Team YAGAYand SUN(Management, Business and Indirect Tax Consultants)

[Pradeep Khatri]

Dear Deepak Wohra,

Please calm down. Om Shanti, Om Shanti, Om Shanti!.

Frequently Asked Questions - T2 Form

Q.1 What is Form T-2?

Ans. To minimize physical interaction between dealers and VAT Officials and for efficient

administration of the Act, it is considered necessary that the details of invoices and goods

receipt note in respect of goods purchased or received as stock transfer from outside Delhi be

sought from the dealers of Delhi online. Form T-2 prescribed/notified by the Commissioner,

Value Added Tax, Department of Trade and Taxes, requires the dealers to furnish details of

invoices and goods receipt note in respect of goods purchased or received as stock transfer

from outside Delhi. This form has to be submitted online.

VAT Department would preferably need to be informed about the inward consignments

before goods enter Delhi by submitting online Form T2. The information can alternatively

be summarily provided through SMS or Web based application from the registered mobile

phone. However, in case of latter Form T-2 would need to be filed within 24 hours of

receipt of goods. Goods should be disposed of after filing of Form T-2 only.

If a dealer claims that he is exempted from filing information in form T-2, Transporter would

obtain a quarterly declaration from such dealers clearly mentioning their TIN in Delhi and a

self-certificate that they are exempted from filing of information in form T-2. This should be

carried each time the transporter is moving goods for such dealers.

Q.2 Why Form T-2 has been prescribed/ notified?

Ans. Form T-2 is an endeavour to check loss of revenue which is caused to the exchequer by

unscrupulous dealers bringing goods into Delhi and then not recording the said transactions

in their stocks/books of accounts. Market intelligence reveals that such dealers sell such

goods without charging VAT. This results in unfair competition to honest dealers from

unscrupulous dealers.

In the long run it would reduce the need for checking of all the vehicles at borders which in

turn will save lot of time of the transporters and dealers. Statistical data generated will help

in better tax planning. The Department would however reserve its right to undertake sample

checking of some vehicles.

Q.3 What is the procedure to be followed by oil companies dealing in petroleum

products for filing Form T-2? Movement of natural gas is a continuous process starting

from receipt of gas in pipeline network till the delivery of goods to customer who draws

gas according to gas availability and plant’s requirement. Gas is transmitted through

underground pipeline. It is not possible to demarcate the boundary of State of Delhi

in the underground pipeline network. Other petroleum products move in tank wagons

also. Please clarify.

Ans. For movement by tank wagons, normal procedure of filing T-2 would apply. Further,

Form T-2 has provision to record mode of transport and one of these modes would be

transportation through pipelines. In case of supply through pipelines, the dealer may provide

information in accordance with the billing cycle used by him to prepare his accounts.

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Q.4 Various transporters collect the material from various branches/vendors in

different States. The goods are then brought to hub of the transporter. The transporter

deploys another vehicle for different destination from the hub. In such cases it is not

possible to have exact information about the vehicle number which brings goods into

Delhi.

Ans. Vehicle number of only the vehicle that finally brings goods into Delhi is required. The

dealer should create a mechanism to get the vehicle number before the goods enter Delhi.

The T-2 details can filed in a summary manner through a web based mobile application /

SMS and requisite details in Form T-2 can be submitted online subsequently within 24 hours

of entry of goods into Delhi.

Q.5 What is required from the transporters? Whether the transporter would be allowed

to bring the goods at his godown or would not be allowed to enter Delhi unless he

obtains the permission of the Department for all consignments in his truck?

Ans. No permission is required by the Transporters to enter Delhi. The Transporter is

required to carry a receipt generated on furnishing of T-2 details online or carry with him the

unique ID generated and received through SMS on submitting the details through mobile.

If vehicle is intercepted then the transporter is required to furnish a copy of the T-2 to the

intercepting team of the Trade and Taxes Department. If a dealer claims that he is exempted

from filing information in form T-2, Transporter would obtain a quarterly declaration

from such dealers clearly mentioning their TIN in Delhi and a self-certificate that they are

exempted from filing of information in form T-2. This declaration should be carried by the

transporter each times goods relating to that dealer are being transported. The consequences

for not filing Form T-2 would lie on the dealer on whose behalf goods are brought into Delhi.

Q.6 Form T-2 is designed to capture details with regard to transport of goods into

Delhi by road only. However, goods may also be received in Delhi through Railways/

Air Cargo/Inland Courier. What is the procedure for such movements? Form T-2 is not

compatible for import details. Further,

a) What is to be filled in the field ‘STATE’ where the supplier is out of India?

b) What is to be filled, in the field ‘Transporters Details’ i.e. whether dispatch details

from outside India are to be filled or dispatch details of local transporter from Seaport

or Airport are to be uploaded?

c) How to upload the details if materials come to Delhi directly from outside India by

Air?

Ans. Provision exists in Form T-2 to address such problems. Option to select Outside India

has been included in the dropdown box for States. Option to indicate mode of transport

i.e. by Road, Railways, Air Carrier, Pipelines, Internet, etc. has also been provided in the

form. Vehicle number would be required only in cases of road transport. GR/RR/Airway

Bill/Courier Receipt would be mandatory for transport by Road/Railways/Air/ Courier

respectively in accordance with Form 7 and 8 of Carriage by Road Rules. In case of import

by sea or air, vehicle number of the vehicle carrying the goods after custom clearance may

be provided before the entry of goods in Delhi or movement of goods within Delhi if the

Customs office is located in Delhi such as ICD Tughlakabad or IGIA.

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Q.7 Where the goods are transported in Delhi by Rail, Form T-2 requires mention

of RR number. After the goods are received at the rail head, goods are moved to

warehouses of dealers in numerous trucks. What modus operandi is to be followed for

movement of goods from rail head to its destination?

Ans. Form T-2 is required only in respect of movement of goods into Delhi. RR number

would suffice here. There is no requirement of any information being uploaded for the

movement of goods within Delhi.

Q.8 How to upload the details if quantity of one invoice is dispatched in multiple

vehicles or goods covered by multiple invoices enter Delhi in a single vehicle?

Ans. There has to be at least one T-2 Form to be filled per vehicle by each dealer whose

goods are entering Delhi in a vehicle. Multiple T-2 Forms can be submitted in cases where

the goods covered by same invoice enter Delhi in various vehicles and vice-versa. If multiple

consignments of different dealers through different invoices enter Delhi, one T-2 Form for

each invoice is required to be uploaded. Thus, there will be one T-2 Form per GR per vehicle

per invoice.

Q.9 Can goods from NCR move without GR?

Ans.. Yes. In case the goods are being imported from the National Capital Region (NCR),

as defined in NCR Planning Board Act of 1985, in goods vehicle owned by the supplier and

where it is practically not possible to carry GR, then Form DVAT -32 would need to be filled

and carried with the vehicle. Compliance with the provisions of the carriage of Goods by

Road Act would also be required.

Q.10 Invoices are prepared indicating basic rate per unit for each item and the Central

Excise Duty and Central Sales Tax is applied on gross sale value as per basic sale rate..

Is it necessary to upload item wise details or commodity wise details would be

sufficient? What is the requirement of Form T-2 if there are number of small items for

spare parts etc.? In such a case can we file total quantity, total amount and average

rate?

Ans. The dealers may give either item wise details indicating amount for each rate of tax or

he may give commodity wise details and total amount of that tax rate. Option is available to

inform either unit wise details or total value of each commodity. It means that if four kinds of

watches of different brands/prices have been purchased then entry of all watches can be can

be made in one row instead of giving unit price of each brand. Total value will be sufficient..

The procedure is illustrated in the following example:

SAMPLE INVOICE

Item Quantity(pc) Rate(Rs/pc) Value(Rs)

Watches 10 1000 10,000

Watches 15 600 9,000

Watches 10 20,000 200,000

Watches 12 15,000 180,000

Total 399,000

Gross Amount: 399,000

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Less Discount @10% 39,900

Balance: 3,59,100

Add Excise Duty @ 12%: ₹ 43,092/-

Add surcharge @ 3% of Excise Duty: 1,293

Total: . 4,03,485

Add CST @ 2%: 8,070

Grand Total: . 4,11,555

For the purpose of filing T2

Value of 25 watches taxable @ 12.5% = 403485*19000/399000=Rs.19214/-

Value of22 watches taxable @ 20% =403485*380000/399000=Rs.384271/-

Entry in form T2

Item Qty Unit Rate Value (Rs.)

Watches Taxable@ 12.5% 25 pieces 19214/-

Watches Taxable@ 20% 22 pieces 384271/-

Q.11 Purchases from nearby places reach Delhi within an hour or two and very often

due to entry restrictions at night. That does not leave the dealer with sufficient time to

submit Form T-2 online particularly when the data to be submitted is bulky?

Ans. The T-2 details can be alternatively submitted in a summary manner through a web

based application / SMS and requisite details in Form T-2 can be submitted subsequently

within 24 hours of entry of goods in Delhi.

Q.12 Information/details in Form T-2 are required to be filled in by the Delhi dealers

before entering of goods in Delhi. This would be done on the basis of information

provided by the supplier of goods. When the dealer receives the goods, there may be

certain mismatches which may occur due to various reasons. How would the details/

information be corrected and amended in the system? Similarly, in certain cases Form

T-2 may be required to be cancelled. What is the procedure?

Ans. The dealer will have an option to submit another T-2 Form giving reference to the

Unique ID against already filed T-2 Form within 24 hours of receipt of goods into Delhi.

The revised details should match with those contained in GR/RR/Airway Receipt/Courier

Receipt. The reason for revision would also need to be indicated. If required, in such cases,

the dealers may be required to justify this with the help of supporting documents and

accounts.

Q.13 Where the goods are brought into Delhi after being rejected by buyer and

returned to the supplier for which dealer would not issue ‘C’ Form. How would the

data of T-2 be reconciled with requirement of ‘C’ Form?

Ans. Form T-2 is to be filed for inward movement of goods and not for outward movement.

The rejection/goods returned would be explained by the Delhi dealer with the help of relevant

documents and accounts. Out of sales made by the Delhi dealer, if some goods are returned/

come back into Delhi, the same would be required to be reported in Form T-2. If required,

supporting documents may have to be produced.

Q.14 What is the value of goods in cases of import of goods from outside the country? Is

it including import duty or without duty?

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Ans. Details including all duties are to be provided. The information should be akin to

DVAT- 30.

Q.15 When should the data be furnished in Form T-2? Whether it should be furnished

at the time goods move from other States or when goods are on borders of Delhi or

when the goods are received in the godown?

Ans. The dealers are required to fill Form T-2 any time before the vehicle/goods enter into

Delhi.

Q.16 Form T-2 requires information of registered office address and material is often

received at the warehouse. There is no provision for mentioning separate address.

Ans. Form T-2 intends to capture details of goods entering into Delhi. The TIN of the dealer

is sufficient. The dealer should have duly informed the details of principal and all other

places of business in Delhi to the Department.

Q.17 The value of goods is computed automatically by the system. In number of cases

this does not match with the total invoice amount as required to be mentioned at the top

of Form T-2 on account of rounding off etc.

Ans. There is a provision for entering the total value of the commodity taxable at one rate of

tax. Option is available to inform either unit wise details or total value of each commodity.

Department Software has been suitably modified for this purpose.

Q.18 Are the dealers required to submit Form T-2 even in cases where inter-State

purchases or Stock transfer is not to be supported by Form C/F/H since the goods are

exempted from Tax in State of dispatch?

Ans. Yes. In all cases where goods are brought into Delhi, the dealer is required to submit T-

2 irrespective of taxability. However, as a concession, for the time being, the department will

not insist for T-2 for the exempted goods i.e. those listed in the First Schedule of the DVAT

Act.

Q.19 Are the dealers required to submit T-2 where goods entering Delhi do not form

part of stock of the dealer e.g. Stationery items for self consumption of the dealer,

promotional materials purchased by dealers, items received from Vendor as free

replacement against defective goods etc.

Ans. Every registered dealer is required to submit T-2 for all goods entering Delhi

irrespective of the usage of goods.

Q.20 Whether submission of Form T-2 is required for goods imported by a dealer/

factory of U.P. but goods are custom cleared at Delhi i.e. import is via Delhi, since

the goods would enter Delhi, move in Delhi and then go out of Delhi to an address

mentioned in invoice of Foreign Seller.

Ans. Form T-2 is applicable for goods brought into Delhi by a dealer of Delhi.

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Q.21 A dealer of Delhi dealing in tax free/exempted goods (e.g. books) and not

registered with the Department of Trade and Taxes but brings taxable goods (like CDs

etc.) into Delhi. Is he required to submit Form T-2?

Ans. Only registered dealers of Delhi are required to submit Form T-2. However, for

interstate trading all dealers are required to mandatorily register with the Department.

Q.22 Whether farmers are required to submit Form T-2?

Ans. T-2 Form is to be submitted by registered dealers only. If the farmer is bringing nonexempt

goods for delivering it to dealer of Delhi, the said dealer will be required to submit

Form T-2. If the farmer intends to sell the goods himself, he would become a dealer requiring

registration. Such a farmer would be required to abide by the provisions of the Delhi Value

Added Tax Act, 2004.

Q.23 What is the position of submission of Form T-2 in cases where supplier or the

buyer does not have a facility of internet?

Ans. Submission of Form T-2 is mandatory for all registered dealers. A desk top computer is

now quite cheap. Further seller/buyer can use the service of their Accountant or even an

internet cafe to submit the information online. Mobile based SMS and web application can

also be resorted to for submitting details. Purchaser can even request the selling dealer to

submit T-2 on his behalf.

Q.24 If the purchasing dealer of Delhi requests the selling dealer to fill in Form T-2 on

his behalf, then dealer of Delhi needs to share his user ID and Password with the seller.

Both these items have secret code, sharing it with others will defeat the secrecy?

Ans. The Department has allowed for creation of multiple User IDs by the Delhi dealers.

Purchasing dealer of Delhi can create some User ID and provide it to the supplier who can

upload the details in Form T-2 at their end, on behalf of the buyer. The multiple IDs may be

distinct from their standard ID normally used for filing of returns and paying tax. This way

the confidentiality will not be compromised. Dealers of Delhi will be able to create and close

such IDs in any number by themselves. The Delhi dealer, however, would be responsible

for any wrong uploading of data, misuse of such IDs, etc. It is, therefore, advisable that the

purchasing dealer itself furnishes the required information.

Q.25 What will happen if the purchasing dealer does not have exact amount of the

goods being brought into Delhi as the requisite information is not available with the

buying dealer?

Ans. Buyer is required to obtain information from the seller about his purchase before

the goods enter into Delhi. After receiving the information, he is required to follow the

procedure. The submission of Form T-2 is mandatory.

Q.26 What is the position of Form T-2 where transactions are of the nature of E-1/E-2?

Ans. The dealer, whose goods finally enter into Delhi shall be liable to submit Form T-2.

Needs further discussion, if goods do not enter Delhi, and endorsed by Delhi dealer to

other state dealer

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Q.27 What is the position of submission of Form T-2 in cases where the term of the sale

is FOR and supplier is not providing details of transporter, vehicle number etc.

Ans. Delhi buyers must seek details from the supplier through E-mail, phone or SMS. There

is no reason as to why the supplier will not make the information available if the buyer

demands it to comply with requirement of law.

Q.28 Our experience suggests that on number of occasions website of the Department is

not accessible due to technical reasons like site under maintenance or network/

connectivity issues. What would be the alternative in such cases especially when goods

are coming from nearby areas where transit time is very less?

Ans. The Department will ensure that the website can handle all such works without

technical failure. The hardware capacity has been augmented after allowing for redundancy

beyond the peak load with reasonable back up to cover occasional failure. Information can

also be submitted initially through a mobile application or web based application.

Q 29 Whether Form T-2 would be required to be filled up during transportation goods

from airport / custom clearing centres (ICDs etc) to their distribution centres?

Ans. Goods transported from airport /custom clearing centre to hub/distribution centres can

be exempted from T-2 for the first leg of transportation if the dealer concerned provides a list

of all such hubs/distribution centres along with an undertaking that the goods will be moved

from the hub/distribution centre after filing form T-2 only. In other cases, filing of T-2 is

necessary before entry of goods into Delhi from custom clearance centres.

Q 30. Is it mandatory to disclose the mobile number of foreign dealer from whom the

goods have been imported.

Ans. In case of imports, it is optional to fill the mobile number of the foreign supplier. In

such case, the dealer has to provide the email of the foreign supplier.

Q.31. How to file Form T-2 in case the goods are imported by Air and lying at airport or

in case where the goods are moving out from ICD.

Ans. In such cases, the dealer has to fill the registration number of the vehicle in which the

goods will move after the clearance is obtained from Customs. However, the details of the

invoice number of foreign supplier has to be provided in the usual manner.

Q 32. Whether form T2 can be filed in respect of goods which are being delivered on the

basis of the Challan.

Ans. No. Form T2 cannot be filed on the basis of the interstate movement of goods on the

basis of the challan. The dealer has to mention the invoice number of goods purchased. In

case, some of the goods are to be returned to the seller, the buyer in Delhi shall return the

goods and would account for them on the basis of credit/debit note.

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Q 33. How to factor transit change of vehicle or driver once the form is filled.

Ans. In such a case, the dealer has the option to file the revised T 2 form.

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Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultant)